The decision comes as part of a wider public drive to advance Estonia's creative industries sector.

The post-production centre will be set up on the new premises of the international Baltic Film and Media School (www.bfm.ee) in the centre of Tallinn and is exptected to become fully operational by the end of 2011. Enterprise Estonia's non- repayable financial contribution is 770,000 EUR, with additional 20% in self-financing from Estonia's Digital Centre, the body initiating the project. The centre will offer a range of digital post-production services, from film scanning through colour correction, digital film formatting, film restauration to special effects, and a Dolby ready sound studio.

The post-production centre will initially be operated by a non-profit organisation charged with providing access to the facitilites to commercial outfits, with a focus on selling audiovidusal services for export. Principal target markets include Scandinavia, Northern Europe and North-Western Russia.

The project was initally based on the findings of an international feasibility study conducted by the London and Berlin-based Peaceful Fish film consultancy in Spring 2009.